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US stock futures pulled back on Monday after China added fuel to simmering trade tensions with the US, setting investors on guard as they turned the page on a bullish May.
S&P 500 futures (ES=F) dropped roughly 0.6%, while those on the Dow Jones Industrial Average (YM=F) fell 0.5%. Contracts tied to the tech-heavy Nasdaq 100 (NQ=F) retreated 0.7%.
China hit back at President Trump’s claim that it has violated the Geneva tariff truce on Monday, blaming the US instead for failing to keep up its end of the deal. The mutual finger-pointing has undermined hopes for a revival of trade talks between the two top economies and stoked lingering trade uncertainty.
CBOT – Delayed Quote USD
As of 7:11:49 AM EDT. Market Open.
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The escalation comes after Trump ratcheted up pressure on Friday with a threat to double US tariffs on imported steel and aluminum to 50% from 25%. While a federal court last week struck down significant portions of Trump’s duties, easing market fears, a higher court temporarily reinstated the duties a day later to allow legal proceedings to continue.
The US dollar (DX-Y.NYB) fell as markets assessed trade-war risks, with rising inflation and slowing growth in particular focus. Meanwhile, gold (GC=F) futures rose amid demand for safer assets, as Ukraine’s dramatic drone strikes on Russia on Sunday added geopolitical worries to trade fears.
In US stocks, the tepid start to June follows a standout May: The S&P 500 (^GSPC) rallied more than 6% in its best month since November 2023 and best May since 1990. The Nasdaq Composite (^IXIC) soared 9%, and the Dow (^DJI) notched a 4% gain. Tech stocks led the charge, as investor optimism around AI and resilient economic data fueled risk appetite.
Against this backdrop, all eyes now turn to a critical slate of economic data this week — most notably the May nonfarm payrolls report due Friday, which will offer fresh clues on how trade frictions and interest rate expectations are shaping the broader US economy. May updates on US factory activity from S&P Global and ISM are on the docket on Monday.
Earnings season is almost wrapped, with results from CrowdStrike (CRWD), Broadcom (AVGO), DocuSign (DOCU), and Lululemon (LULU) the main points of interest in a smaller week of reports.
LIVE 4 updates
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Good morning. Here’s what’s happening today.
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How Trump’s tariffs turned the ‘TACO’ trade into Wall Street’s biggest debate
Yahoo Finance’s Alexandra Canal reports:
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At close: May 30 at 4:58:36 PM EDT
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Europe stocks the clear winners amid Trump’s trade war
Stock markets in Germany and elsewhere are staging a world-beating rally, far outperforming the S&P 500 (^GSPC) this year as President Trump’s trade-war push to boost US fortunes apparently backfires.
Bloomberg reports:
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Asian markets slide as geopolitical tensions rise
Asian stocks fell on Monday, weighed down by escalating geopolitical tensions and fresh trade friction between the US and China.
Hong Kong’s Hang Seng Index (^HSI) led regional losses, sinking 2.2% as renewed sparring between Beijing and Washington spooked investors.
Markets in mainland China were closed for a public holiday, but a doubling of steel tariffs to 50% due to take effect Wednesday is set to hit markets as they reopen Tuesday.
Elsewhere in Asia, Japan’s Nikkei 225 (^N225) declined 1.4%, South Korea’s Kospi (^KS11) shed 0.3% and Australia’s S&P/ASX 200 (^AXJO) edged down 0.2%.
